What is FAS? Free Alongside Ship — Before the Goods Go On Board

1. Define commercial objective and constraints.
2. Map FAS options to cash, risk, and documents.
3. Write chosen path into PI / contract.
4. Verify with Trade31 tools; check Trade31 for country policy.
5. Execute with evidence checkpoints.

Wrong FAS choices change landed cost, cash timing, or document acceptance. Rebuild the commercial model after any change.

Main risks: cash lock, document rejection, duty surprise, shipment delay, and relationship damage from unclear terms.

• Confusing FAS alongside delivery with FOB onboard
• Using FAS for container terminal handovers without vessel alongside reality
• Seller not clearing export under FAS
• Omitting the named port of shipment

• Confusing FAS alongside delivery with FOB onboard
• Using FAS for container terminal handovers without vessel alongside reality
• Seller not clearing export under FAS
• Omitting the named port of shipment
• Knowing the term but omitting it from contracts — state "What is FAS? Free Alongside Ship — Before the Goods Go On Board" with place and Incoterms version
• Document fields not matching quotes or physical cargo
• Ignoring country- or bank-specific field rules
• No email trail when terms change
• Treating the topic as a substitute for quality or payment clauses

Situation: You must decide how to handle FAS now.

What is the safest next step?

1. If Terms unclear → then Pause; send checklist questions → You should: Do not ship or pay yet
2. If Risk too high → then Switch to safer structure → You should: Document the change in PI
3. If Controls ready → then Proceed with written milestones → You should: Monitor docs and OTIF

Importer

• Scenario: Apply FAS on a live PO
• Business role: Importer
• Challenge: Terms unclear
• Recommended solution: Use checklist + decision tree
• Expected outcome: Deal advances with controls

Exporter

• Scenario: Explain FAS to buyer
• Business role: Exporter
• Challenge: Buyer pushes unsafe terms
• Recommended solution: Offer structured alternative
• Expected outcome: Trust without blind risk

SME

• Scenario: First use of FAS
• Business role: SME
• Challenge: No SOP
• Recommended solution: Follow Trade31 Gold checklist
• Expected outcome: Avoid first-order failure

Procurement

• Scenario: Standardize FAS
• Business role: Procurement
• Challenge: Team inconsistency
• Recommended solution: Policy + scorecard
• Expected outcome: Repeatable results

FAS requires the seller to place goods alongside the vessel nominated by the buyer at the named port of shipment, cleared for export. Risk transfers alongside — not when goods are on board (that is FOB).

Keep definitions operational: name places/ports, dates, document triggers, and cash milestones — avoid naked acronyms in contracts.

Use the decision tree above, lock the chosen path in writing (RFQ / PI / contract), then verify with related Trade31 tools before deposit.

• ☐ FAS terms written in PI/contract
• ☐ Related documents aligned
• ☐ Cash / risk impact reviewed
• ☐ Trade31 tool verification done

• Embed "What is FAS? Free Alongside Ship — Before the Goods Go On Board" in quote approval and pre-cutoff checklists
• Confirm field requirements early with forwarders, brokers, and banks
• Validate data with Trade31 tools and templates
• Update SOPs when onboarding staff or changing buyer terms
• Archive key documents and communications per shipment

What is FAS? Free Alongside Ship — Before the Goods Go On Board affects quote accuracy, document compliance, clearance speed, and payment security. Build these dimensions into your SOP.

Apply this guide to What is FAS? Free Alongside Ship — Before the Goods Go On Board in these situations:

• Ocean or inland waterway FCL/LCL exports
• Letter-of-credit shipments
• FOB/CIF quotes with buyer-nominated carriers
• Incoterm selection before comparing EXW/FCA/DDP

FAS still appears in bulk and project cargo where loading is buyer-controlled. Using FAS language for container CY handovers creates operational mismatch — prefer FCA/FOB as appropriate.

Use this guide when your deal depends on clear responsibility, cash timing, document control, or compliance classification. Prefer it for first shipments, new buyers/suppliers, and high-value POs.

Do not treat this page as legal advice, country-specific tariff law, or a substitute for bank/counsel/broker instructions on regulated goods.

• Normalize competing quotes to the same Incoterms + payment + document set before ranking.
• Write milestones and evidence (B/L, inspection, deposit) into the PI.
• Escalate regulated or high-value cases to broker/counsel early.